LTC Long @ 176.57

Yesterday's inaugural post flagged a bullish valuation signal on Litecoin (spot ref 176.57). Some additional colour.

RETINA™ provides machine generated signals based on macro factors. Yes, any asset - especially crypto - can be driven by a host of things. Regulatory risk is clearly a very real threat.

But ultimately, financial assets reflect their macro environment - where we are in the growth cycle, is inflation rising / falling, are financial conditions easing or tightening, where is risk appetite etc? Quant Insight's algorithms capture all these & distil it all down into a macro-warranted fair model value. The difference between spot price & fair value = a Fair Value Gap. Essentially a way to track dislocations in markets between the price of crypto, FX, cmdties etc & their fundamental environment.

RETINA™ then pushes these signals out.

Litecoin's macro fair value is currently 236.

The biggest driver is global inflation expectations. Higher global bond yields & steeper yield curves are also consistent with higher XLCUSD.

A "risk on" environment also helps. Note that includes events in China. China stress features as a top driver via sovereign CDS spreads. One word of caution therefore to LTC longs - if the Ever Grande story bleeds into the banking sector & beyond, that's bad news & a risk scenario that requires careful monitoring.

All-in-all, Litecoin wants a reflationary, risk on backdrop & offers a useful inflation hedge.